Otherwise, you could just pursue the claim pro se.

Forming a new LLC to take title to complete an exchange or quit claiming your property into an LLC right before beginning an exchange are both recipes for disaster with regards to your 1031 exchange.  

His claims of punitive damages don't make any sense, but I'm still concerned about what a courtroom might say.Any advice/suggestions would be greatly appreciated.

Isis,I've never paid for an inspection...because I had over a decade experience in construction, property insurance claims and landlording and I was my own boots on the ground, inspecting the properties.  

Buyers are allowed and should ask to see every detail of previous years numbers, Tax returns, leases, expenses etc, etc,.When a seller is not forthcoming with support for every financial claim they should expect buyers to put in extremely low offers.

As owner you have the ability to claim the net income from the LLC on your tax returns or to take distributions on your returns.

The manager claims he's done everything to rent it and cannot.

It covers you and the LLC in an event that a buyer makes a claim against you. 

As a now single person with no mortgage deduction, a 6 figure income and only getting to claim my dependent every other year, I'm terrified to see what my tax situation looks like this year.

they claim it is just added to your loan balance and so if you flip a home you can pay it off then.